M/S.Tamogna Enterprises Private Limited vs. Commercial Tax Officer

Held

The Court held that the impugned assessment order dated 21.04.2020 was passed without prior notice and opportunity being given to the petitioner, which amounts to a violation of the principles of natural justice. The Court noted the admitted facts regarding the shift of the petitioner's principal place of business to Vijayawada and the change in the petitioner's email ID. The Court found that the show cause notice was sent to the Visakhapatnam address, which was no longer the petitioner's principal place of business, and to an email ID that was not in use by the petitioner. Consequently, the Court allowed the Writ Petition, setting aside the assessment order. The matter was remanded back to the 2nd respondent, who is the present jurisdictional Assessing Officer, with a direction to issue notice to the petitioner and pass orders after providing an opportunity of hearing. The Court made no order as to costs.

Facts

The petitioner, M/s. Tamogna Enterprises Private Limited, registered under the AP VAT Act, had its branch office shifted from Visakhapatnam to Vijayawada in September 2019. The petitioner informed the 1st respondent of this change, and an amended registration certificate was issued on 04.10.2019, showing the Vijayawada address as the principal place of business. Subsequently, the 2nd respondent became the jurisdictional assessing authority. The petitioner was later informed of tax arrears amounting to Rs. 81,12,025/- for the assessment year 2016-17 under the CST Act, 1956, arising from an assessment order dated 21.04.2020. The petitioner challenges this order, claiming no show cause notice or any other notice was received prior to its passing.

Key Issues

1. Whether the assessment order dated 21.04.2020, passed by the 1st respondent, is liable to be set aside on the ground that it was passed without affording the petitioner an opportunity of being heard, thereby violating the principles of natural justice? Petitioner's contention: The petitioner argued that as of 26.02.2020, its principal place of business had shifted to Vijayawada, and this change was reflected in the respondents' records. Furthermore, the petitioner's email ID had also been changed. Therefore, a show cause notice sent to the erstwhile Visakhapatnam branch office address and an outdated email ID did not constitute valid service of notice. The petitioner relied on the principles of natural justice. Respondent's contention: The respondent (1st respondent) produced a show cause notice dated 08.03.2020, purportedly sent to the Visakhapatnam address, and a reply show cause notice sent on 09.03.2020 to the petitioner's email ID, padma@kommineni.co.in. The respondents contended that notice was indeed issued.